fbpx

Act Now to Restructure Your Debt

New mortgage rules start January 1, 2018. Unfortunately, this might affect your ability to use your home equity to consolidate your high-interest debt into a new or existing mortgage. This is a great option if you are in need of extra cash flow, want to pay down your debt faster, and save potentially thousands of dollars in interest. That’s why you should act now if you want to realize these benefits.

Consider the following example, in which existing mortgage, car loan, and credit cards total $225,000. Roll all that debt into a new $233,000 mortgage (including a fee to break the existing mortgage) and just look at the payoff:

*Monthly Payments

                                    Total Debt       Current        New

Mortgage                    $175,000            $873              $1,162

Car Loan                      $25,000             $517               $0

All credit cards           $25,000             $650              $0

(*Assumes 3.5% 5-year, 25 yr term.  Credit cards 19.9% and car loan 9%, both 5 yr am. OAC. Subject to Change. For illustration purposes only.)

If you put $500 of your monthly savings back into your mortgage payment, you’ll reduce your amortization from 25 years to 15. Or you could invest in RRSPs or RESPs and reap some tax benefits. The choice is yours.

To find out how you can lower your debt, boost your monthly cash flow and be mortgage-free quicker, before the new rules come into effect, contact us today!

Household Income Purchasing Power TODAY Purchasing Power JAN 1, 2018
$40,000 $273,084 $222,882
$60,000 $409,626 $334,323
$100,000 $682,710 $557,206
$150,000 $1,024,065 $835,809
$200,000 $1,365,420 $1,114,411

Thank you for taking the time to read our blog. Be sure to like us on Facebook for regular news and updates.

Rasha Ingratta & Mortgage Associates

By Mortgage Intelligence

® Registered trademark of Mortgage Intelligence Inc. © Copyright 2013, Mortgage Intelligence Inc., all rights reserved.

Leave a Reply

Your email address will not be published. Required fields are marked *